Tata Coffee has reported a healthy 109% growth in its second quarter net profit to Rs 36.8 crore as compared to corresponding previous quarter riding on good growth in its instant coffee division and a sharp turnaround in its global subsidiary Eight O' Clock Coffee. Total income at Rs 477 crore for the quarter was up 15%.
According to the company, the instant coffee operations continues to show a substantial growth which was further added by better operating result from coffee plantations coupled with a favourable foreign exchange on its exports. "Eight O’ Clock Coffee has reflected a major turnaround by turning black compared to the previous year during which it was in loss. This is in spite of major competitive pressures in the market place. The improved performance is attributed to superior operating efficiencies in production and coffee procurement. The recent tie-up with Green Mountain for the placement of Single Serve – Pods has been recently rolled out and will extend the reach of the Brand," the company's management added.
Tata Coffee which also has entered into a strong relationship with Starbucks to supply coffee seeds for its outlets in India said that the Indian Espresso Roast will be a hallmark feature of all Starbucks stores in the market and highlights the quality espresso available in India. "As part of the agreement, Starbucks and Tata Coffee Limited will work toward developing and improving the profile of Indian-grown arabica coffees around the world by elevating the stature of Indian coffee, as well as improving the quality of coffee through sustainable practices and advanced agronomy solutions," the statement added.
Tata Coffee gained close to 0.7% on NSE to close at Rs 1012.60 a share on Monday.